Lawsuit against Target over warranties and "protection plans"

[jackandcat]

An Arkansas resident is suing Target over the marketing of "product protection plans" at our checkout lanes. These "protection plans" supposedly provide post-warranty "protection" (whatever that is). Mr. Leflar claims that Target isn't following Federal laws requiring stores to make manufacturer warranty information available to purchasers at the point of purchase, particularly before peddling an "extended warranty" "product protection plan".

I've certainly had many guests ask about manufacturer warranties on products they are buying. It isn't readily available in the store. E-commerce stores like Amazon make warranty information available online for customers to read before making a purchase. In the ancient days when Federal warranty laws were written, retail stores actually had large banks of file cabinets filled with printed product warranties available for customers to inspect. Nowadays, those warranties would be electronic downloads.

Mr. Leflar is saying that the store can't shirk the responsibility for providing warranty information to customers at the point of purchase -- which could be fulfilled nowadays in electronic format rather than having a TM go into the back office to search for the correct file folder.

While this may be yet another episode of the class-action law game -- settling with a heaping helping of attorneys' fees but with little actual change to business practices -- this lawsuit does point out the legal risks of peddling profitable "extended warranties" at store checkout lanes. Here's a store peddling an "extended warranty" to its customer, without providing info to the customer about the product manufacturer's warranty. Maybe this is why Target and Allstate (RIP Squaretrade) use the weasel-word phrase "product protection plan".

Target class action alleges retailer does not provide pre-sale access to product warranties
Target can move warranty class action back to federal court
Procedural ruling in the case

 

[Hardlinesmaster]

The info is available prior to the sale at my store. We have a big pad with terms & conditions that spot sent us. The guest can go to our website for more details too.

Target Service Page | Allstate Protection Plans

If you're a Target customer with an Allstate Protection Plan and need help, want to register your plan or file a claim.

www.squaretrade.com

 

[happygoth]

We are talking about two different things here: the manufacturer's warranty vs. Target's Protection Plan. At Sears we also sold Protection Plans and had pamphlets we gave the customer explaining them.

We never had any information on manufacturer's warranties. That information is usually inside the product packaging, with something on the box that states the product has an X-year warranty of some sort. I'm sure today that information is available online for anyone to look up.

 

[IceIceBaby]

Not sure why Target decided to stop giving brochures on warranties. Can't blame them for suing Target, they could very well win.

 

[SigningLady]

From Target.com (on a random electric toothbrush I pulled up):



Where I see the gap, at least as far as guest interactions go, is in TMs knowing where to direct guests to obtain this information. I certainly didn't know they could call to get it.

Simple solution is to create a sign telling guests where to find manufacturer warranties prior to purchasing to post at the registers or maybe even near products that have them.

 

[Rarejem]

It seems to me that providing the warranty info from a manufacturer is the responsibility of the manufacturer. They could easily provide a QR code on their packaging that provides them with the information. Right now that information is usually inside of the packaging and since we take nearly everything as a return if they don't like the warranty they can just return it. I call frivolous.

 

[IceIceBaby]

Not sure why Target decided to stop giving brochures on warranties. Can't blame them for suing Target, they could very well win.

I should say protection plans, not manufacturer warranties.

 

[IceIceBaby]

It seems to me that providing the warranty info from a manufacturer is the responsibility of the manufacturer. They could easily provide a QR code on their packaging that provides them with the information. Right now that information is usually inside of the packaging and since we take nearly everything as a return if they don't like the warranty they can just return it. I call frivolous.

The issue in the article is about the Target protection plan, not the manufacturer warranty.

 

[Sushi2Go]

And you can't rely on team members to give accurate information on how it works because 0 training.

 

[Walmart]

Target protection plan is a bit tricky. To understand the lawsuit you need to understand how the protection plan works.

Let's say a guest buys a 2 year protection plan. You expect 2 years of coverage with Target right? Well sort of...

Assume you buy a laptop with a standard one year manufacturer warranty.

How do they process that if it breaks within the first year?

They make you go to the manufacturer warranty first. If for reason they don't cover it, Target protection will kick in within the plans limit. If the manufacturer covers it but charge you shipping, Target will cover all shipping cost.

The 2nd year is when Target/Allstate will take any direct claims which includes fixing it, replacing it with same or like items, or some kind of giftcard.

Now does the guest get any of this information during or before the point of sale. No, not that I know of unless guest specifically looks it up themselves with all the fine prints. All you get is a receipt with registration numbers etc.

If the guy suing has a laptop with 2 year manufacturer warranty that covers and pays for his shipping. His protection plan is basically pointless which is why he's suing. If he had known this at the point of sale, he wouldn't have bought the protection plan.

 

[He77CAT]

Any other stores have every single $1.29 matchbox car offer a $3.50 extended toy warranty pop up at check out? whoever inputs this stuff needs to figure out their job.

 

[Tessa120]

Target protection plan is a bit tricky. To understand the lawsuit you need to understand how the protection plan works.

Let's say a guest buys a 2 year protection plan. You expect 2 years of coverage with Target right? Well sort of...

Assume you buy a laptop with a standard one year manufacturer warranty.

How do they process that if it breaks within the first year?

They make you go to the manufacturer warranty first. If for reason they don't cover it, Target protection will kick in within the plans limit. If the manufacturer covers it but charge you shipping, Target will cover all shipping cost.

The 2nd year is when Target/Allstate will take any direct claims which includes fixing it, replacing it with same or like items, or some kind of giftcard.

Now does the guest get any of this information during or before the point of sale. No, not that I know of unless guest specifically looks it up themselves with all the fine prints. All you get is a receipt with registration numbers etc.

If the guy suing has a laptop with 2 year manufacturer warranty that covers and pays for his shipping. His protection plan is basically pointless which is why he's suing. If he had known this at the point of sale, he wouldn't have bought the protection plan.

And that's the issue right there. People can't make informed decisions about the protection plans if they don't have access to what the manufacturer covers prior to making the purchase.

 

[flow4areasonuno]

I just always hit no. Nobody ever wants the extra warranty anyway.

 

[TurgetCirkl]

I just always hit no. Nobody ever wants the extra warranty anyway.

i only offer it for laptops and TVs lol.

 

[animalcrossing]

I just always hit no. Nobody ever wants the extra warranty anyway.

I try to ask but whenever someone says no I tend to say "nobody ever wants the warranty" which guests always think is the funniest thing ever for some reason

 

[jackandcat]

And that's the issue right there. People can't make informed decisions about the protection plans if they don't have access to what the manufacturer covers prior to making the purchase.

Best answer. I vaguely remember Target offering "Target Protect" coverage years ago, but it wasn't until about 4 years ago after these became SquareTrade plans that this became a "speed bump" during checkout.

What Target is peddling at the checkout lanes isn't a warranty. It's a type of insurance described using the weasel words "protection plan".
I haven't been trained or licensed to sell insurance, particularly a policy costing $3.50 on a $1.19 Hot Wheels toy, and I'm not being paid a sales commission.
Peddling product insurance was part of Brian's "store modernization" program, but now it may be backfiring in terms of a greedy class-action-lawsuits lawyer who is using a decades-old federal law on manufacturer warranties against Target's "protection" racket.

 

[dannyy315]

This is why I always just ask about AppleCare if I'm covering tech, I don't even know how the Allstate plans work lol

 

[Hardlinesmaster]

This is why I always just ask about AppleCare if I'm covering tech, I don't even know how the Allstate plans work lol

AppleCare is better than Allstate. You can go to Apple Store for help.

 

[Tessa120]

Another option is to contact your insurance company to see if they have a policy for expensive stuff. State farm calls it a personal articles policy, usaa has one but i dont remember what its called. I pay $22.25 for $6200 in computer stuff and $1100 musical instruments, no deductible if something happens.

 

[Mikuhl]

This is why I always just ask about AppleCare if I'm covering tech, I don't even know how the Allstate plans work lol

AppleCare is better than Allstate. You can go to Apple Store for help.

AppleCare does have deductibles, where Allstate doesn't, which is an important distinction.

 

[dannyy315]

AppleCare does have deductibles, where Allstate doesn't, which is an important distinction.

I mean not really a deductible, it's more like a copay lol. There's a small service fee, but it's not like there's an amount you have to spend in order to get coverage which is how health insurance deductibles work.

 

[Not My Name]

They're deceptive "give us your money for extremely likely nothing in return because we're going to force you to deal with the manufacturer during the first year" bullshit highway robbery and they've been that way since they first rolled out back when they were called "extended service plans." It feels like these were introduced somewhere around 2010 give or take a year or two.

The only thing surprising about all of this is the fact that it took well over a decade for some type of class action lawsuit to pop up.

They had varying years iirc. But a two year plan was actually only one year. So not only did they not make the manufacturer warranty available, but you were only paying for an additional year. It's deception through and through. Psychopathic leeches that offer nothing to society or even the company they represent other than being a capital drain.

 

[DBZ]

I had to be on a register today. All the things will protection plans had information on the screen to tell the guest like 24/7 support 🤣 🤣

Hello Allstate, my matchbox car is out of alignment. I demand you fix it now!

 

[Tessa120]

I mean not really a deductible, it's more like a copay lol. There's a small service fee, but it's not like there's an amount you have to spend in order to get coverage which is how health insurance deductibles work.

Think of auto deductibles. You have to pay the first $xx up front and the insurance covers the rest. You don't pay your part, you don't get your car fixed.

 

[dannyy315]

Think of auto deductibles. You have to pay the first $xx up front and the insurance covers the rest. You don't pay your part, you don't get your car fixed.

Oh I understand from that vantage point. But the only thing is that Apple started treating AppleCare as a monthly service. I got it for my iPhone, and the only way to extend it after the initial 2 years expired was to switch to a monthly plan. So I guess it's more like a premium in that scenario lol.